Suzlon Energy Shares Expected To Be in Focus as Sebi Imposes Penalty; Company to Appeal Order

Shares of Suzlon Energy are set to be in focus today following Sebi’s order. The company has announced that it will appeal against the order. Notably, the penalty was issued on May 29 after the stock market closed, thus investors are expected to react to the development today.

What Sebi Said In Its Order

Sebi fined Suzlon Energy and its former executives Rs 29 crore and alleged that the company had inflated its profits, misrepresented its financial information and hid disclosures. Notably, the current order overturns a June 2025 adjudication.

Over violations of the SEBI Act, PFUTP, and listing norms, The company’s former chairman Vinod R. Tanti was fined Rs 5.75 crore, the former Vice Chairman Girish R. Tanti was fined Rs 5.45 crore and former executives Kirti J. Vagadia and Amit Agarwal were fined Rs 1.5 crore and Rs 30 lakh respectively.

Sebi’s probe was triggered by a 2019 complaint which led to Sebi uncovering a March 2014 transaction where Suzlon sold its Rs 77 crore maintenance business to its own subsidiary Suzlon Global Services (SGSL) for Rs 2,000 crore and made a profit of Rs 1,922.92 crore. However, SGSL lacked funds, so the balance was cleared via circular routing. In the absence of this sale, Suzlon’s FY14 net worth would have stood at  Rs 741 crore and not the reported Rs 2,664 crore. Sebi found that Suzlon moved its SGSL stake to another unit, double-counting an Rs 829.78 crore profit on the same assets.

Additionally, Sebi found a $569 million (Rs 4,050 crore) foreign subsidiary loan contingent liability disclosed in FY17 which was omitted in FY18 via insurance accounting reclassification. Sebi has also alleged that circular funding, equity conversions, and impairments also occurred at subsidiaries SE Forge and Suzlon Gujarat Wind Park. The regulator has directed noticees to  pay the penalty within 45 days.

Suzlon Energy To Appeal Against Order

On May 30, Suzlon Energy announced that it will actively contest Sebi’s order. The wind energy major has clarified in an official statement that it believes the penalty is unjustified. Suzlon stated that it is currently taking appropriate legal advice and intends to approach the Securities Appellate Tribunal (SAT) to seek a stay. The company assured its stakeholders that the ongoing legal proceedings will not disrupt its daily operations.

Suzlon Energy FY25 Results

For the full fiscal year 2025–26 (FY26), Suzlon Energy posted a 53.7 per cent year-on-year growth in consolidated revenue from operations to Rs 16,679.11 crore. The wind energy firm’s EBITDA jumped 62.7 per cent to Rs 3,022 crore, with full-year EBITDA margins expanding by 100 basis points to 18.1%. The company’s net profit (PAT) grew by 52.7 per cent to Rs 3,163.39 crore compared to the previous fiscal year.